ITAT remanded matter on question of rejection of books of account u/s 145 (3) if proper explanation or details were filed before AO

Brief of the case:

AO find decline in gross profit rate in current year in comparison to previous year. On examination of books of account AO found discrepancies in accounts. He made additions after rejecting books of account u/s 145 (3). Assessee filed appeal before CIT (A) who allowed appeal of the assessee by holding that mere difference in rate of gross profit would amount to rejection of books of account and deleted the additions. Aggrived from the order revenue filed appeal before ITAT. After going through the facts of the case ITAT remanded the matter back to AO for further verification.

Facts of the case:

• Assessee deals in purchase and sale of Till. Assessee filed his return at Rs. 57,33,650/-. The AO observed that the assessee had not enclosed the audit report prescribed u/s 44AB of the Act. The assessee has submitted in the return that the case is not auditable.

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